Digital transformation for SMBs

For small and midsize businesses, delivering a better customer experience is key to digital transformation

Daniel Newman, Principal Analyst and Founding Partner of Futurum Research

Small and midsize business CIOs, we know you’re out there and feeling pressure to deliver on digital transformation. If it feels difficult to make meaningful change in your organization’s digital transformation (DX) journey, you’re not alone.

In our report, The State of Digital Transformation for SMB, done in conjunction with SAS, we found that better customer experience is the overarching theme driving digital transformation. Analytics, AI and machine learning hold much potential to help SMBs improve their relationships with customers and gain traction in the marketplace. SMB CIOs need to create an environment that leverages their valuable data to inspire.

Download free report: The State of Digital Transformation for SMB

This report offers your SMB five steps to digital transformation success. Get insights into some of the biggest challenges you'll face, how to overcome them and goals to help propel your company forward.

Digital transformation SMB: A magical example from the NBA

A great digital transformation SMB example comes from the Orlando Magic, one of the more digitally-savvy basketball teams in the league. Over the years, the Magic have become more sophisticated in how they use analytics to personalize the fan experience and grow their business through improved pricing, revenue management and overall marketing strategies.

The team collects and models data from multiple sources to predict what products and services fans are likely to purchase or if ticket holders are on the fence about renewing for next season. Personalized offers are then automatically sent to fans via push notifications, emails, and web banners.

Indeed, digital transformation efforts like these deliver positive results, but that doesn’t mean they come easily. We found that many SMB CIOs struggle in four main areas when it comes to driving DX. CIOs are often faced with talent shortages, skills gaps, budget issues and culture challenges. All of which can be difficult to overcome without the right team and plan in place.

Digital transformation SMB: What you need to succeed

For digital transformation SMB initiatives to be successful, SMBs need to appoint a leader who is committed and in charge. As shown by the Futurum 2018 Digital Transformation Index, filtered for midmarket companies, most DX (more than 60%) is being led by a C-suite executive other than the CEO – most likely by the CIO.

The company’s leadership must embrace DX, and CIOs must work in tandem with all C-suite executives. The CIO needs to infuse the right technology into business operations, lead with a data-driven mindset, and foster a culture that welcomes and supports change. When that happens — the marriage of technology and a data-driven culture — you’re on the road to digital transformation SMB nirvana.